Operations and Supply Chain Management
14th Edition
ISBN: 9780078024023
Author: F. Robert Jacobs
Publisher: MCG
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Chapter 20, Problem 6DQ
Summary Introduction
To discuss: The assumptions that are inherent in production setup cost, ordering cost, and carrying cost.
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Sam's Pet Hotel operates 51 weeks per year, 6 days per week, and uses a continuous review inventory system. It purchases kitty litter for $11.00 per bag.
The following information is available about these bags:
> Demand
95 bags/week
> Order cost $52.00/order
> Annual holding cost = 25 percent of cost
> Desired cycle-service level = 80 percent
>Lead time 4 weeks (24 working days)
> Standard deviation of weekly demand = 15 bags
> Current on-hand inventory is 320 bags, with no open orders or backorders.
a. Suppose that the weekly demand forecast of 95 bags is incorrect and actual demand averages only 75 bags per week. How much higher will total
costs be, owing to the distorted EOQ caused by this forecast error?
The costs will be $
higher owing to the error in EOQ. (Enter your response rounded to two decimal places.)
Chapter 20 Solutions
Operations and Supply Chain Management
Ch. 20 - Prob. 1DQCh. 20 - Distinguish between in-process inventory, safety...Ch. 20 - Discuss the nature of the costs that affect...Ch. 20 - Under which conditions would a plant manager elect...Ch. 20 - What two basic questions must be answered by an...Ch. 20 - Discuss the assumptions that are inherent in...Ch. 20 - Prob. 7DQCh. 20 -
Which type of inventory system would you use in...Ch. 20 - Prob. 9DQCh. 20 -
When cycle counting inventory, why do experts...
Ch. 20 - Prob. 1OQCh. 20 - Almost certainly you have seen vending machines...Ch. 20 - Prob. 3OQCh. 20 - Prob. 4OQCh. 20 - Prob. 5OQCh. 20 - Prob. 6OQCh. 20 - Wholemark is an Internet order business that sells...Ch. 20 - Prob. 8OQCh. 20 - Prob. 9OQCh. 20 - Prob. 10OQCh. 20 - Prob. 11OQCh. 20 - Ray’s Satellite Emporium wishes to determine the...Ch. 20 - Dunstreet’s Department Store would like to develop...Ch. 20 - Charlie’s Pizza orders all of its pepperoni,...Ch. 20 - Given the following information, formulate an...Ch. 20 - Lieutenant Commander Data is planning to make his...Ch. 20 - Jill’s Job Shop buys two parts (Tegdiws and...Ch. 20 - Demand for an item is 1,000 units per year. Each...Ch. 20 - The annual demand for a product is 15,600 units....Ch. 20 -
Daily demand for a product is 100 units, with a...Ch. 20 - Item X is a standard item stocked in a company’s...Ch. 20 - Annual demand for a product is 13,000 units;...Ch. 20 - Gentle Ben’s Bar and Restaurant uses 5,000 quart...Ch. 20 - Prob. 24OQCh. 20 - Daily demand for a product is 60 units with a...Ch. 20 - University Drug Pharmaceuticals orders its...Ch. 20 - Sarah’s Muffler Shop has one standard muffler that...Ch. 20 - Prob. 28OQCh. 20 - Prob. 29OQCh. 20 - It is your responsibility, as the new head of the...Ch. 20 - Prob. 31OQCh. 20 - A local service station is open 7 days per week,...Ch. 20 - Dave’s Auto Supply custom mixes paint for its...Ch. 20 - Prob. 34OQCh. 20 - Demand for a book at Amazon.com is 250 units per...Ch. 20 - Palin’s Muffler Shop has one standard muffler that...Ch. 20 - Daily demand for a certain product is normally...Ch. 20 - A particular raw material is available to a...Ch. 20 - CU, Incorporated (CUI), produces copper contacts...Ch. 20 - In the past, Taylor Industries has used a...Ch. 20 - Alpha Products, Inc., is having a problem trying...Ch. 20 - DAT, Inc., produces digital audiotapes to be used...Ch. 20 - Prob. 1AECh. 20 - Analytics Exercise: Inventory Management at...Ch. 20 - Analytics Exercise: Inventory Management at...Ch. 20 - Prob. 4AECh. 20 - Prob. 5AECh. 20 - Prob. 1PECh. 20 - Prob. 2PECh. 20 - Prob. 3PECh. 20 - Prob. 4PECh. 20 - Prob. 5PECh. 20 - Prob. 6PECh. 20 - Prob. 7PECh. 20 - Prob. 8PECh. 20 - Prob. 9PECh. 20 - Prob. 10PECh. 20 - Prob. 11PECh. 20 - Prob. 12PECh. 20 - Prob. 13PECh. 20 - Prob. 14PE
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